An ecological perspective to master the complexities of the digital economy

Abstract Economic and social interactions are shifting to digital platforms which grow into vast ecosystems where user engagement creates value for members while ecosystem orchestrators harvest massive revenue. The digital ecosystem business model succeeds by adeptly navigating fast-changing environments, including new technologies and volatile demands, through dynamic innovation in a decentralized decision-making setting. This renders digital platform ecosystems complex adaptive systems. Recognizing that natural ecosystems are a prime example of complex adaptive systems, we propose a systematic hierarchical framework for describing and understanding digital ecosystems, rooted in ecology and evolution. Our framework compares digital ecosystems hosted by societies to natural ecosystems embedded in biomes, products to species, and technologies and elements of business strategy to the genetic makeup of a species. As digital platforms face heightened scrutiny about their socio-economic power and societal value, our approach contributes to the development of deeper understanding and sustainable governance of the digital economy.